Shell Plc on April 29 agreed to acquire India-based renewable power platform Sprng Energy for $1.55 billion, boosting the energy company’s low-carbon output as it shifts away from oil and gas.
Shell said it would buy 100% of Solenergi Power Private Ltd., the flagship company of Sprng Energy group, from U.K.-based investor Actis.
Sprng Energy supplies solar and wind power to electricity distribution companies in India, seen as a major growth market in the power sector in the coming decades.
Sprng Energy’s portfolio consists of 2.9 gigawatts-peak (GWp) of assets and a further 7.5 GWp of renewable energy projects in the pipeline.
The deal will triple Shell's current renewables capacity in operations.
“This deal positions Shell as one of the first movers in building a truly integrated energy transition business in India,” Wael Sawan, Shell’s head of integrated gas and renewables, said in a statement.
The deal is expected to close later this year.
Shell currently has 4.7 gigawatts (GW) of renewable energy generation capacity in operation, under construction or committed to sale. It has a further pipeline of 38 GW in future projects.
The London-based company aims to become a net zero greenhouse-gas emissions company by 2050.
Several international energy companies have invested in India’s renewables and power sector in recent years, including BP through Lighsource BP and TotalEnergies through its 20% holding in Adani Green Energy.
Recommended Reading
Seadrill Sells Three Jackups for $338MM to Gulf Drilling International
2024-05-17 - Seadrill Ltd. is also selling its 50% equity interest in the joint venture that operates the rigs offshore Qatar.
Could Crescent, SilverBow Buy More in South Texas After $2.1B Deal?
2024-05-17 - The combination of Crescent Energy and SilverBow Resources will yield one of the Eagle Ford’s top producers—and the pro forma E&P could look to gobble up more acreage in South Texas after closing.
Permian Powerhouse: Apache Doubles Down on Core Assets After Callon Acquisition
2024-05-16 - Apache CEO John Christmann detailed plans for the Permian Basin and Suriname during the SUPER DUG Conference & Expo.
Crescent Energy to Buy Eagle Ford’s SilverBow for $2.1 Billion
2024-05-16 - Crescent Energy’s acquisition of SilverBow Resources will create the second largest Eagle Ford Shale E&P with production of about 250,000 boe/d, the companies said.
Diamondback’s Van’t Hof Plays Coy on Potential Delaware Divestiture
2024-05-16 - Diamondback Energy’s President and CFO Kaes Van't Hof also addressed new Permian exploration and the lack of “fun” dealing with the FTC on its deal to buy Endeavor Energy Resources.